Sunak confirms that his government “has a plan that will work” to reduce inflation in the United Kingdom National and international economy

UK Prime Minister Rishi Sunak.Victoria Jones (AFP)

British Prime Minister Rishi Sunak confirmed on Sunday that his government has a “plan that will work” to address high inflation in the United Kingdom – at 8.7% – and affirmed his “full support” for the Bank of England to raise interest rates to 5%.

In an interview with the BBC, the leader said Conservative Party He was questioned on Sunday about the latest measure approved by the Monetary Policy Committee of the English-issued bank, which last Thursday announced a half-point increase in interest rates to their highest level since 2008. “I think the history of the Bank of England has adopted England, including… Its Governor (Andrew Bailey), over a long period of time, has maintained that inflation has been managed appropriately and citizens should have confidence that it will fall to the target (2%). Shown.

Sunak confirmed that the banking entity had his “full support” and said that “there is no alternative to reducing inflation,” which has reached “historically high levels,” according to the Office for National Statistics (ONS).

The chief executive admitted the decision to raise interest rates was “difficult” and “very unpopular” although he insisted it was “the right thing for the country in the long term”. “I never said this wouldn't be difficult, but I want to give assurances to citizens that we have a plan, that the plan will work and we will get through this,” Sunak said. As a result of high inflation.”

In this sense, the conservative leader also stressed that “it must be very clear that what is hurting citizens, and what is causing challenges in their daily lives and in their budgets, is inflation.” Following recent economic indicators, various analysts expected interest rates to reach 6% by the beginning of 2024 – which would be their highest level in two decades – which in turn raised concerns about the consequences of rising mortgage costs this year. nation.

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The UK's Institute for Fiscal Studies (IFS), an influential laboratory of ideas in this country, has warned that increases in interest rates could cause nearly 1.4 million Britons with a mortgage to lose 20% of their available economic capacity.

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